Leasing Lift-off: Unveiling the Dynamics of Aircraft Lessor Portfolios

By Aditya M

The aviation industry takes flight on the wings of countless marvels of engineering, but behind each plane soars another crucial element: the lessor. Lessors, the financiers of the skies, play a vital role in keeping airlines operational by providing them with aircraft through lease agreements. But the lessor landscape is a complex dance, influenced by economic trends, manufacturer backlogs, and geopolitical climates. 

In the dynamic realm of aviation leasing, the interaction between aircraft lessors and lessees significantly influences the direction of aircraft portfolios. The year 2023 saw a complex interplay of market dynamics, technological advancements, and global events that left a notable impact on these portfolios. Analysing this dynamic landscape yields valuable insights into aviation trends.

Graphic 1: Illustrates the top 10 lessors of 2023 based on their portfolio size. AERCAP emerges as the leader with 1829 aircraft in its portfolio, followed by SMBC Aviation Capital with 742 aircraft, all the way down to Carlyle Aviation with 382 aircraft. Examining the growth in aircraft numbers between 2022 and 2023, SMBC leads with 236 aircraft added to its portfolio in 2023 compared to 2022.

Graphic 2: Transitioning to the top 10 lessees of 2023 based on their portfolio size, American Airlines holds the top position with 406 leased aircraft, all the way down to British Airways with 129 leased aircraft. Analysing the expansion of leased aircraft fleets between 2022 and 2023, Wizz Air leads with an addition of 66 leased aircraft, followed by Indigo with 60 aircraft being added to their fleet.

Graphic 3: Delving into the breakdown of lessors' portfolios by aircraft type for 2023 reveals that the number of narrow-body jets significantly outweighs wide-body jets. AERCAP leads with 1425 narrow-body jets and 301 wide-body jets followed by SMBC & Avolon. Regional jets, on the other hand, are less prevalent, with only 4 out of 10 lessors including them in their portfolios, with AERCAP boasting the highest number of regional jets at 87. In terms of backlog figures, Avalon leads with 423 aircraft on order for delivery followed by AERCAP with 334 orders.

Graphic 4 & 5: Taking a deeper dive, analysing lessors' order and delivery dynamics for 2023 unveils surprising trends in lessors' orders, where the new entrant Chinese aircraft manufacturer COMAC secures the largest share with 250 orders, surpassing the duopoly of Airbus with 188 orders and Boeing with 127 orders respectively. In terms of delivery dynamics, a total of 452 Airbus aircraft and 143 Boeing aircraft were delivered. For regional jets, 33 Embraer aircraft were delivered, while 20 ATR aircraft were ordered by lessors.

In summary, the data presented highlights the dominance of certain lessors and lessees, as well as emerging trends in aircraft types and manufacturers. As the industry continues to evolve, understanding these dynamics becomes increasingly crucial for stakeholders to navigate the ever-changing lessor/lease ecosystem effectively.